Sunday, June 18, 2017

June has so far been a boring month for the markets. The indices have moved in a very tight range. Mid caps have corrected quite a lot. The next triggers for the markets are the Monsoon progress and the GST implementation.

1. The progress of the Monsoons by the end of the month will be closely watched for its impact on the markets. The positives have all been factored in.

2. The date for GST rollout has been set for July 1st and anything more than teething troubles will be taken negatively by the markets.

3. Globally, the rate hike by the Fed has taken the rates to 1.25 %. What no one realizes is that higher the rates go in the US, lesser is the cushion for a rate cut in India.

4. Globally, there do not seem to be any major negative triggers and that is 1 reason the markets are in a somnolent range.

5. The markets have risen from 7893 to 9700 levels without any major correction. The maximum the markets have corrected is 200 points. A correction of 500-600 points will come at some point of time.

6. Trump seems to have settled down in the US. So, negative triggers reduce from the US. He always will be the unpredictable wild card.

Nifty

Nifty 8088- Trend Up

Reverse If closes below 8000

Buy generated at 7400 on March 3rd 2016

Updated for 27th June 2016

First Reversal point can be taken for exit of positions.Second reversal point can be taken as Taking of positions in Reverse Direction.I prefer taking positions if second reversal points hold on closing basis in the last 15 minutes of trade